The way a company borrows money affects how much it invests and how it deals with debt problems later on. Using a mix of bank loans and market borrowing helps companies invest more and avoid getting stuck with too much debt. Companies that are growing tend to rely more on bank loans and less on market borrowing when they have fewer good investment opportunities, higher risk in their assets, lower costs if they go bankrupt, or lower taxes to pay. The ups and downs in how good investment opportunities are affect how companies decide on their mix of debt.